Forex Today: Markets on the verge as Trump chaos revolves around the same
United States (US) President Donald Trump was once again the main market mover on Wednesday, saying they are seeking immediate talks with Europe on Greenland. He added Greenland would not be a threat to NATO if the territory were under US control.

Here is what you need to know on Thursday, January 22:

United States (US) President Donald Trump was once again the main market mover on Wednesday, saying they are seeking immediate talks with Europe on Greenland. He added Greenland would not be a threat to NATO if the territory were under US control. He also said he wouldn’t use excessive force, only to later say he would bring back battleships and that he wouldn’t defend Greenland under a lease, during a speech at the World Economic Forum in Davos.

President Trump also referred to the US economy. Among other things, he said that inflation has been defeated, that they can now have nuclear energy at good prices and safely, and that he intends to raise living standards. Nevertheless, relief hit markets after Trump said the US does not want to use excessive force to obtain Greenland. Stocks and the US Dollar (USD) recovered while bonds eased.

The US Dollar Index (DXY) is trading near the 98.60 price zone, trying to claw back some ground after slipping to a two-week low on Tuesday amid persistent uncertainty following the Trump speech.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Swiss Franc.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.18% 0.09% -0.03% -0.04% -0.28% -0.15% 0.42%
EUR -0.18% -0.09% -0.20% -0.21% -0.45% -0.32% 0.24%
GBP -0.09% 0.09% -0.13% -0.13% -0.37% -0.24% 0.33%
JPY 0.03% 0.20% 0.13% -0.01% -0.25% -0.13% 0.45%
CAD 0.04% 0.21% 0.13% 0.01% -0.24% -0.12% 0.46%
AUD 0.28% 0.45% 0.37% 0.25% 0.24% 0.13% 0.70%
NZD 0.15% 0.32% 0.24% 0.13% 0.12% -0.13% 0.57%
CHF -0.42% -0.24% -0.33% -0.45% -0.46% -0.70% -0.57%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

EUR/USD is trading near the 1.1700 level, cutting back a big chunk of its weekly gains while losing all of its intraday gains, now siding towards bearish.

AUD/USD trades at levels not seen since October 2024, with the high posted at 0.6777, as the Australian Dollar (AUD) keeps rising against a pressured US Dollar (USD). 

GBP/USD trades flat on the day near the 1.3430 price zone, trimming some of its earlier sessions' gains as the USD regains some traction. The United Kingdom (UK) published December inflation data that came broadly in line with market expectations. The annual reading ticked modestly higher to 3.4% from 3.2% in November and above the 3.3% expected.

USD/JPY has seen little movement throughout the day, trading near 158.10 and staying on the green side on a weekly view. 

Gold hit a fresh all-time high of $4,888 before retreating somewhat, and trades in the $4,810 region.

(This story was corrected on January 21 at 19:20 GMT to fix the month of the date, which is January instead of December.)

Coming up next:

  • Australian employment data will be released early Thursday.
  • US GDP and PCE will be printed alongside Initial Jobless Claims in the American session on Thursday. 
  • New Zealand Q4 CPI will be released early Friday.
  • The BoJ interest rate decision and monetary policy decisions alongside UK Retail Sales, Germany, and the Eurozone HCOB PMIs and UK S&P PMIs will be released on Friday.

(This story was corrected on January 21 at 19:20 GMT to fix the month of the date, which is January instead of December.)

Gold FAQs

Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.

Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.

Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.

The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

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1일 변동
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0
EURUSD
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0
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1일 변동
+0%
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